Selecting a Search Firm
by Joseph Hawkins , Chief Executive Officer
Merritt, Hawkins, & Associates
Doctor recruitment emerged as a niche service about 25 years ago and has grown ever since. Need for recruiting services in 1990s was accelerated by managed care and its emphasis on primary care gatekeepers. Once the province of hospitals in second-tier or rural areas that had little access to residents, recruitment has now become a priority for urban facilities competing for managed care contracts, large medical groups, and corporate systems that often have their own physician recruitment arms.
Although there are only a handful of large, national recruitment firms, there are hundreds of local and regional recruitment companies and thousands of in-house physician recruiters working for hospitals, health networks, practice management companies, and HMOs. There are an estimated 4,5000 to 5,000 physician recruiters working throughout the country today, or more than one for every four final-year medical residents. This does not include the temporary, or locum tenens, side of the business, which continues to be a thriving, multimillion-dollar industry.
Understanding the types of services offered is a good first step for any physician thinking about working with a search firm. There are two types of recruitment firms "retained" firms and "contingent" firms. The features of retained firms include:
- a billing structure composed of an up-front retainer, with hourly or monthly bills combined with a placement fee due upon completion of the search
- a dedicated approach, with a recruitment consultant assigned to a limited number of searches
- control of the process, achieved through on-site profiles of the opportunity and through pre-interview meetings between the recruitment consultant and the physician candidate; emphasis on direct mail as a candidate sourcing technique
- strong service orientation, with logistical support provided in the areas of credentialing, referencing, licensing, contract negotiation, and relocation.
- "Contingent" firms, by contrast offer a billing structure entirely "back-loaded," with payment due only upon completion of the search. Other characteristics of contingent firms include:
- a shotgun approach in which physicians are "shopped" from one client to the next
- little assumption of control (no on-site profiles or personal physician interviews) with most of the process driven by the client
- emphasis on databases as a candidate sourcing tool
- relatively little service back-up in the areas of credentialing, licensing, etc.
In the past, there has been a clear distinction between retained and contingent firms. That distinction has begun to fade in recent years as retained firms alter their fee structures and contingent firms seek to expand their level of service. From a physician's perspective, there are advantages and disadvantages to using either type of firm. Physicians who wish it to be widely known that they are seeking a new position and want their CVs to be circulated widely may wish to use a contingent firm. Physicians who desire a more discreet approach may wish to use a retained firm. However, the main point to consider is not whether the firm is retained or contingent, but whether it is a reputable company with professional standards. There are several steps physicians can take when selecting a firm to ensure a positive experience, including the following:
Visit the firm. Physician recruitment is not an established profession requiring a particular license or degree. Anyone can operate a phone from a desk and call themselves a recruiter. It is important to have a first-hand knowledge of a firm's operations if you are going to entrust it with the important task of finding you a new practice and home. An on-site visit sometimes can be arranged to the interview. Short of an on-site, request promotional material and determine if it reflects a high level of professionalism and stability.
Know your recruiter. A good recruiter is going to make an effort to learn as much as he or she can about your professional and personal history and about your character. Physicians should make a similar effort to know something about a person who could dramatically change their lives. Don't let the recruiter ask all the questions. Find out where he or she went to school, employment history, family background and how many physicians he or she has placed. Your purpose is to determine if the recruiter has a real desire to create a lasting match, or if they are just throwing your CV at a wall to see if it will stick. If you perceive the recruiter does not have the experience, ability, or character to handle a complex process like recruitment, go with a different firm or request a different recruiter.
Speak with physicians they have placed. Physician recruitment is akin to high-level executive recruitment in terms of the savvy and sophistication required to be effective. By speaking with physicians the firm has placed, you will discover whether they have the professional acumen and interpersonal skills required to interact effectively with physicians.
Confirm expertise. How much does the recruiter know about physician compensation formulas and contracts? Do they understand how managed care affects physician incomes and practice styles? Do they understand medical politics and reporting structures at health care facilities? It is important in a complex, transitional market that your consultant has the expertise to guide you through the often convoluted recruitment process. Test the recruiter's knowledge to see if he or she is a true consultant, or merely a salesman.
Ask for full service. Sending your CV across a desk is not full service. Full service means assistance with every phase of the process, from a thorough introduction to the opportunity, to the relocation of your family. The recruiter should arrange your interview so that you meet with all relevant members of the administration and medical staff, a real estate agent, and any other individuals you may wish to meet, from clergymen to the local basketball coach or piano instructor. Make it clear you want a recruiter willing to go the extra mile to see that you and your family are properly matched with the opportunity.
Maintain control. A recruiter is there to facilitate the search process and to provide you with all the information you need to make a decision. Ultimately, however, the decision to accept or decline an offer is yours. A good recruiter will not pressure you one way or the other. However, they will ask you to make a timely decision, because the entire search process will be put on hold until a decision is made.
Even when all these bases are covered, there are no guarantees of success. Sometimes both a firm and a physician can make a good faith effort to work together but still not accomplish the desired result. However, if you were impressed with the recruiter's ability and commitment, make him part of your support system, like you would a competent attorney or financial planner. In today's market you never know when a good recruiter will come in handy.
Joseph Hawkins is Chief Executive Officer of Merritt, Hawkins, & Associates, a national health care staffing firm based in Irving, Texas. Questions to Mr. Hawkins may be addressed by calling (800)-876-0500. Merritt, Hawkins, & Associates' on-line practice opportunity network can be accessed at http://www.merritthawkins.com/.

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